You buy a second hand car from a dealer. Which of the following items are counted in Canadian GDP?

Question

Quizplus · Accepted Answer

The portion of the purchase price attributable to repairs, commissions, and profits to the dealer would be counted in Canadian GDP as it represents current economic activity. The purchase of a second-hand car alone does not contribute to GDP as it was already included in GDP in the year it was manufactured. The portion of the purchase price attributable only to repairs made by the dealer (Option B) and the portion attributable to both repairs and commissions to the salesman (Option C) do not include the profit made by the dealer and hence do not represent the full economic activity associated with the purchase.

You Buy a Second Hand Car from a Dealer